In this year’s budget, the Indian Finance Minister Mrs. Nirmla Sitaraman announced that India will have its own cryptocurrency based on blockchain technology. She also mentioned that a crypto investor needs to pay 30 percent tax on his earnings. If you invest 1000/- INR in the crypto and sell it for 1200 after some time. Now you earn 200 and that is the taxable amount. Crypto is reaching new heights and the Indian government recognized that. This step will impact the Indian economy and the crypto market positively.
According to reports in Economics Times, India has 20 million crypto investors. Most youngsters in India attract to crypto technology. Right now India holds crypto assets worth 53 billion US dollars.
Bitcoin is the most valued cryptocurrency in the world and also the first crypto that was started in the year of 2009. The value of one bitcoin is about 42000 US dollars currently. Currently, in the world, there are a number of cryptocurrencies available to invest in. Some of them are Dogecoin, Shibainu, Ethereum, and many more.
Cryptocurrency Introduction – What is Cryptocurrency?
Cryptocurrency is a virtual currency based on the latest blockchain technology or a means of virtual exchange of currencies that are created by individuals and also used by them.
Cryptocurrency is secured by a technology called cryptography. Mostly cryptocurrency uses a decentralized network so no single person or authority has the power over this currency. So it is near impossible to counterfeit crypto transactions because they are immutable in nature.
Crypto allows the transaction between two parties without the involvement of any third-party app or person. Crypto is a combination of many encryption and cryptography algorithms that makes its transactions more secure than ever.
Bitcoin is the most popular and valued crypto in the world. It is also the first cryptocurrency introduced in the year 2008 on paper. Right now we have thousands of crypto registered also known as ’altcoins. Cryptocurrency is not accepted fully as currency in the world right now. Some giant companies like – Microsoft, Tesla, WordPress, Later, and many other companies started accepting payments using crypto. On the other hand, some countries banned this completely and it does not have any regulating authority over it which raises security concerns.
Facts and Statistics about Cryptocurrency
- The total market value of the cryptocurrency market globally is nearly 3.8 billion US dollars. In the last decade, it has come out as the greatest financial innovation of all time.
- Currently globally more than 12000 cryptocurrencies are in the world that is operated.
- The very first country to accept bitcoin exchange as a financial transaction is Vanuatu.
- Australia, Canada, and Japan allow crypto trading in their country while Kazakhstan, Vietnam, and Iceland banned them fully.
- No one in the world knows exactly who is the creator of Bitcoin.
- The biggest bitcoin miner in the world is China.
- The amount of all bitcoins is limited. That is the main reason why there is a dream hike in the price of bitcoin. It happens because of less supply due to limited resources.
Why is Crypto a good investment? – Pros of Cryptocurrency
- Cryptocurrency is based on the decentralized databases that make it secure and all the transactions in this are immutable; no single person or authority can modify it.
- Crypto brings transparency because it completely eliminates the influence of third parties in the transaction.
- Facebook, now known as Meta also introduced its biggest ever project of Virtual 3d reality that uses crypto for all its financial transactions.
- Crypto is the future of the financial sector and right now it is having its dream run. Also, crypto is limited in the world like gold and any other thing so the prices of this vary on-demand supply.
- India also introduced that by the end of this year India will have its own digital currency.
- Prices on the crypto market change rapidly and investors can cover their losses and gain a big amount of money in no time.
Cons of Cryptocurrency as Investment
- No one actually knows who created the cryptocurrency and the exact way how the prices of this vary. So it’s quite possible that there is price manipulation of crypto.
- There is no legal authority over the cryptocurrency so no one knows how it operated. It is possible that the government can ban that entirely.
- A major concern with crypto is that it is used in most cyber criminal activities. Illegal activities are funded through this means of investment and that can be dangerous.
- Price manipulation is quite easy in the crypto market. One day a company invests a big amount in the currency and makes the prices high. After some time all the crypto and downfall of prices start and that makes many people insolvent.
- RBI in India already indicates that the use of digital currency on a bigger scale can be hazardous. It will bring instability and impact the economy of the nation negatively.
Is crypto a good investment option?
Crypto brings a great amount of return to its early investors and comes out as a great financial innovation. It has the ability to transform the way the financial market is operated. But the anonymity in crypto operations is something that is a matter of concern for the people. This is why we see growth in crypto but now when people are aware it is not increasing like earlier Crypto can be used as a long-term investment only if people have surety about this currency because some people accept it and some don’t..
Crypto is not operated by anyone and that is the cause of the problem because on the darknet it is used for illegal activities. If a digital currency has legal authority then it will be used for productive things and create trust among people. So Crypto is a good investment option, the only thing that is required is to pay more emphasis on how it is operated.